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What is Source of Funds (SOF)? 

2 min read

Source of Funds (SOF) is a term used to describe the origins of money that an individual or organization uses to finance its operations. In establishing the source of funds, firms must seek to understand not only where funds came from (in terms of the account from which they were transferred) but the activity that was involved in generating those funds – for example, a source of employment, the sale of a house, or an inheritance.

Examples of sources of funds include: 

  • Salary: Please provide a recent payslip from your employer (and/or a tax statement) as well as a bank statement showing your recent account balances. Your name, date, and amounts should be clearly visible.
  • Sale of property: Please provide a copy of the contract of sale (or a copy of a land registry, title deed, or a letter from a real estate agent or lawyer confirming the sale of a property) and a bank statement that displays the proceeds of the sale being deposited. Your name should be clearly visible on both documents along with amounts and dates..
  • Savings: Please provide a bank statement reflecting that the savings are equal to or greater than the amount being invested. The statement period should cover at least three months. Your name, dates, and amounts should be clearly visible.
  • Inheritance: Please provide a copy of the testament (or a letter from the executor of the will or a lawyer) and a bank statement that displays the proceeds of the sale being deposited. Your name should be clearly visible on all documents along with amounts and dates.
  • Pension fund: Please provide details on the pension fund (along with a fund statement, if available) and a bank statement that displays the pension being deposited. Your name should be clearly visible on the documents along with amounts and dates.
  • Other: For other sources of funds, please provide official documentation evidencing the source of wealth and funds. Your name should be clearly visible on the documents along with amounts and dates. The amounts in question should support your financial activity with dtcpay.